Try testing the processor in another motherboard to see if it causes the same behavior, or it is recognized as it should be.
If the processor causes the same behavior on 2nd motherboard, then proceed to contact Intel
Corporation at: 916-377-7000 (if you are located in North America. Otherwise check this link for contact information:
If the processor works fine on 2nd motherboard, then make sure that your motherboard fully supports this processor.
I've put on another MB, and also that shows that it is an E5588 CPU.
Therefor I've bought an E5700, and this one works.
Anyway, since I know myself in the world of computers never happened to me and it just hurts